How long can a death benefit remain with TRS unpaid?
The IRS sets limits on the disbursement of accounts after a participant’s death. Generally, TDA accounts must be entirely disbursed by the end of the calendar year that includes the 10th anniversary of the member’s death. Any portion of the TDA account that is payable to a non-individual (i.e., trust, estate, or organization) must be entirely disbursed by the end of the calendar year that includes the 5th anniversary of the member’s death.
Similar timeframes may be applied for QPP death benefits. In all cases, TRS works to distribute death benefits as quickly as possible upon receiving completed claims and supporting information from claimants.